If your business has a VAT registration or operations in Spain, then you’ll probably already know how important (and cumbersome) the SII filing system is to understand. If you’re about venture into Spain and need to register for VAT, then the below information provides a foundation of understanding SII.
SII implementation
Agencia Tributaria (the Spanish Tax Authority) implemented Suministro Inmediato de Información (Immediate Supply of Information) within the Royal Decree 596/2016 of December 2nd. SII became effective in Spain on the 1st July 2017.
What Does SII mean for Spanish Taxpayers?
The SII system obliges taxpayers who are submitting monthly VAT returns to provide information of issued and received invoices electronically to the Agencia Tributaria as follows:
- For sales invoices, within four days after their issuance (excluding Saturday, Sunday and national holidays),
- For purchase invoices, within four days from the accounting date or date of the customs documents; and
- In all cases, before the 16th of the following month in which the transaction occurs.
Does Your Businesses Need to Comply with SII in Spain?
SII reporting obligations apply to both established and non-established taxable persons who are required to self-assess VAT on a monthly basis due to having met the following criteria:
- Large Companies with a turnover in excess of €6,010,121
- VAT groups
- Registered in REDEME (Monthly VAT Refund Registry)
Additionally, any other taxable person may opt to apply SII reporting. If applied, the self-assessment periodicity will be monthly, and the taxable person must remain in the system for at least the calendar year in which the option is exercised. The option must be made during the month of November prior to the start of the calendar year in which it takes effect.
How to Submit Data and Invoices Required for SII
There are two ways of submitting data and/or invoices for SII to Agencia Tributaria:
- Electronically via Web Services via an XML file, which will allow a supply of information in real time
- Filling in a “web form” for those taxpayers who perform very few operations or to send the data of specific invoices in isolation.
The use of SII Web Services requires authentication with a recognized electronic certificate.
Businesses submitting their data and invoices for SII are permitted to submit the periodic VAT self-assessments ten days later than usual deadline (the 30th of the month). Furthermore, these businesses are no longer required to submit models 347 (transactions with third parties), 340 (registration books) and 390 (annual VAT summary).
SII Penalties and Fines
The delay of the submission of a business’s transactions through SII could be penalized with a monetary fine proportional to 0.5% of the amount of the invoice, with a quarterly minimum imposed of €300 and a maximum of €6,000.
What SII Support is available to Companies?
A taxpayer can use different platforms and service providers to present invoices. This can be completed by a third-party on the taxable person’s behalf. We offer assistance in the compliant review and submission of correct data and invoices for timely SII submissions. To find out more about how we can assist your business, email info@vatglobal.com.
